Avient Corp (AVNT)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.49 | 2.57 | 2.61 | 2.82 | 2.89 |
Based on the solvency ratios provided for Avient Corp, the company shows consistently low levels of debt in relation to its assets, capital, and equity from 2020 to 2024. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio all stand at 0.00 for each of the five years, indicating that the company's financial obligations are minimal compared to its total assets, capital, and equity.
Furthermore, the financial leverage ratio, which measures the extent of a company's financial leverage, shows a decreasing trend over the five-year period from 2.89 in 2020 to 2.49 in 2024. This suggests that Avient Corp is relying less on debt financing to support its operations and growth, which can be considered a positive indicator of financial stability and solvency.
Overall, based on the solvency ratios analyzed, Avient Corp appears to have a strong financial position with low levels of debt relative to its assets, capital, and equity, as well as a decreasing reliance on debt financing over the years.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.13 | 1.76 | 2.05 | 4.10 | 2.96 |
The interest coverage ratio of Avient Corp has shown some fluctuations over the past five years. In December 31, 2020, the interest coverage ratio stood at 2.96, indicating the company's ability to cover its interest expenses almost three times over with its operating income.
By December 31, 2021, the interest coverage ratio improved to 4.10, showing a stronger ability to meet interest obligations comfortably. However, there was a significant decline by December 31, 2022, with the ratio dropping to 2.05, suggesting a reduced capacity to cover interest expenses with operating income.
The trend continued into December 31, 2023, where the interest coverage ratio fell further to 1.76, indicating a potential strain on the company's ability to service its debt obligations.
By December 31, 2024, there was a slight recovery in the interest coverage ratio to 3.13, showing some improvement in the company's ability to meet interest payments, although it remained below the levels seen in 2021.
Overall, the fluctuations in Avient Corp's interest coverage ratio suggest varying levels of profitability and financial stability over the five-year period, highlighting the importance of closely monitoring the company's ability to cover its interest expenses in relation to its operating income.